David Ganek

Now that David Ganek’s got a bunch of free time, what with his hedge fund having gone under due to the insider-trading scandal that sent his partner to jail, he realized something: He doesn’t need five bedrooms or the grand entertaining spaces or solid brass bar or to live in Jackie Kennedy’s old digs, especially when he and the missus are getting robbed blind every now and again. Nope, 740 Park just doesn’t do it for Dave and Danielle anymore, so they’ll sell it for twice what they paid nine years ago and grab one of those nice-looking three-bedrooms Jared Kushner is selling down at the Puck Building. Read more »

Remember, about a year ago, when hedge fund Level Global was rumored to have a government mole in its ranks? At the time, the firm’s representatives said such reports were total bull shit, and, investors were told, here’s how they knew that to be the case:

“As is the case each time there is a new development in the U.S. Attorney’s investigation, we have conducted an extensive internal factual correlation analysis, cross-referencing the facts in the complaints to our firm’s records. Our experienced outside legal counsel has also conducted its own analysis. Based on all of our work and analysis, we have concluded that these complaints do not appear to be referencing Level or Level personnel.”

Frankly, LG was getting a little tired of having to constantly run factual correlation analysis in order to prove the world wrong but c’est la vie. Anyway, despite usually having a 99.9% accuracy rate, the factual correlation calculator apparently missed one.

Last month, federal prosecutors in Manhattan said in a court filing in the case of a PGR employee that Level Global had made a $1.7 million profit by covering a short position it had in Taiwan Semiconductor Manufacturing Co. Ltd. in June 2009. That May and June, a Level Global technology analyst had about seven phone calls with Manosha Karunatilaka, a PGR expert who worked at TSMC and has pleaded guilty to supplying inside information to investment fund clients, prosecutors said. The Level Global technology analyst, Spyridon “Sam” Adondakis, was overseen by Mr. Chiasson and is cooperating with the government’s investigation, the Journal has previously reported, citing people familiar with the situation.

And now this is happening: Read more »

David Ganek’s Level Global, one of the three hedge funds raided last fall as part of the Feds’ insider trading case, has received approximately $750 million in redemption requests, according to people familiar with the matter. Read more »

Hilarious as it would be to stick investors with the bill, that’s not the kind of hedge fund we’re dealing with here.

Re: Level Global Investors, L.T.D.

Dear Investors:

Understandably, many of you have inquired into the legal costs and expenses we are incurring as a result of the U.S. Attorney’s Office investigation into the subpoena. As we have informed you in the past, we are cooperating completely with that investigation and, to that end, we have engaged experienced external legal counsel to oversee our response to, and in cooperation with, the Government’s inquiry.

Read more »

Additionally, the firm is said to be fielding “massive redemption requests,” with Cornell University asking for its money back. The $4 billion Greenwich-based Level Global, which has not been charged with any wrongdoing was one of the first firms to be raided by the FBI, and was founded in 2003 by SAC alum David Ganek. Read more »

Matthew Goldstein reports: Read more »